Leaving Unemployment for Self-Employment a Discrete Duration Analysis of Determinants and Stability of Self-Employment Among Former Unemployed

46 Pages Posted: 21 Nov 2003

See all articles by Frank Reize

Frank Reize

Center for European Economic Research (ZEW)

Date Written: July 2000

Abstract

The paper investigates the determinants and the success of self-employment among former unemployed. Self-employment has become an important re-employment opportunity during the last decade due to increasing subsidies. The econometric analysis is carried out using discrete hazard rate models on 14 waves of the German Socio- Economic Panel, covering the period from 1983 to 1996. I do not find any effects of unemployment duration on the transition from unemployment to selfemployment. Moreover, unemployed people entering self-employment have higher skills than the average of the unemployed population and self-employment seems to be more stable than paid-employment would have been because people face a lower risk of becoming unemployed again.

Suggested Citation

Reize, Frank, Leaving Unemployment for Self-Employment a Discrete Duration Analysis of Determinants and Stability of Self-Employment Among Former Unemployed (July 2000). ZEW Discussion Paper No. 00-26, Available at SSRN: https://ssrn.com/abstract=461522 or http://dx.doi.org/10.2139/ssrn.461522

Frank Reize (Contact Author)

Center for European Economic Research (ZEW) ( email )

P.O. Box 10 34 43
L 7,1 D-68161 Mannheim
Germany

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